Are Loans in Bad Credit Situations accompanied by No Guarantor Claims?

Bad credit situations are primary concern for most of the borrowers. It is absolutely not a matter of surprise to understand on how situations like these really cross the way and make an entry into life.  Under all types of lending conditions, it is made mandatory by the lender to have a guarantor available for materialising quick and smooth transfer of funds. However, there are situations and criteria available, where your favourite lender may not ask you to provide supporting documents that a guarantor is recommending loan application.

People with less than perfect credit score are facing financial hassles, but this will not mean lender is completely ignorant about their over growing request for the funds. He analyses the situation in which the funds can be disbursed. In many cases, your lender is going to do plenty of need analysis, taking into account several correlated factors one after another, and the desired loan is approved, irrespectively whether you are providing a guarantor or do not have one available to support your application.

Pre-Conditions for Loan Approval to Come in Bad Credit Situations

The lender is willing to make an offer to you despite the fact you do not have a guarantor and you have a less than perfect credit score in your favour. However, there are certain basic pre-conditions in which the approval is likely to land in your way. Let’s take a quick review on them.

Pre-condition#1

No Consistently Poor Credit Score – The lender is interested in knowing, whether you were consistently have a poor credit score and that too for a long time, or it has just built up in the recent time. In the latter case, lender will be interested in offering you loans for bad credit situations with no guarantor claims.

Pre-condition#2

No Multiple Bad Credit Factors – Lender will not show any interest towards your request for the loan, if he gets the idea that there are multiple bad credit factors vis-à-vis CCJs, arrears, missed out payments, late payments or anything which puts a ‘Defaulter’ card on your head. Make sure you do not have these factors titled on your loan application, because otherwise, you are going to be in a big problem.

Pre-condition#3

Intention to Repay in Timeframe - The borrower who has no intention of repaying the loan is one of the biggest rivals of lender. It is true in your case too. You should not be borrowing the money for repaying the loan either late, or not at all.  In either situation, you may not be considered a reliable borrower by your lender. This may further jeopardise your credit score to the levels where it cannot be revived.   

Pre-condition#4

Adherence to Lender’s Guidelines – The success with bad credit loans is guaranteed only when you adhere to lender’s guidelines and not otherwise. Resolution cannot be sought in one direction only. You have to be committed and this commitment should be seen everywhere.

Pre-condition#5

Keep it Really Simple and Clear – You have no guarantor to support your application form, and you it well in your gut. But, you have to keep this information open sourced, and let your lender know of it from the beginning. In case you are covering the information or hiding it, you are going to make the entire situation perplexed.

Pre-condition#6

Do Not Haggle on Interest Rate Settlements - Your guarantor is charging what he intends to charge from you. Haggling for the interest rates will not take you far. There is a situation, which is likely to build up and turn the trajectory against you.

Is Your Lender Pulling a Soft Enquiry?

Though you may have bad credit history and your financial situation has degraded over a period of time, you have to be sure that your lender is pulling nothing but a soft enquiry. A lender, who pulls soft enquiry, is not going to make any changes to your credit score. The credit score report is visible only by you. On the flipside of it, hard enquiry will start hurting the score from the first day onwards, and again, if this continues, your credit score is going to get disrupted. This is important because a hard enquiry will actually hurt your credit score.  If a lender comes across a hard enquiry anywhere on your report, presumably you are not the best bet for the loan.

How you spend your funds availed through loans for bad credit situations and no guarantor claims

Logically speaking, your approval on loans for bad credit situations and no guarantor claims have come across your way quite nice and easy. You have funds, but you do not know on how to spend them to suit your financial interests? It is one of the most confusing and critical situation for the borrower. Here spending the funds would essentially mean, you have to balance your spending. It directly means, you have to minimise your expenses, for which you have to devise a strategic game plan. Your plan should be such that you continue to save more each month, and build up a strong financial base for yourself.  Furthermore, the plan you put into place for borrowing should establish your identity before your lender as worthy, despite the fact that you are reeling in bad credit situations.

The Moral Behind

Everything goes well with your funding if you are serious about following the guidelines, as well as compare your financial requirements against the loan offers made by the direct lender. Less than perfect credit score is not always a matter of prejudice here. You can still avail the bad credit loan without showing a guarantor, provided you are firm on your commitment, and have general understanding on it.